Sanderson Farms, Inc. (NASDAQ:SAFM) Q3 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 11:00 am ET

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Sanderson Farms, Inc. (NASDAQ:SAFM) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to Sanderson Farms, Inc. Third Quarter 2020 Conference Call. Today's call is being recorded.

At this time for opening remarks and introductions, I would like to turn the call over to Mr. Joe Sanderson. Please go ahead, sir.

Executive
Joe F. Sanderson

Thank you. Good morning and welcome to Sanderson Farms third quarter conference call. Lampkin Butts and Mike Cockrell are with me this morning.

Before discussing the quarter, we want to send our thoughts and prayers to our friends and neighbors in Louisiana and Texas as they deal with the impact of Hurricane Laura. By all accounts, the hurricane moved onshore as one of the most powerful storms to ever hit United States. We know firsthand, the challenges of those in the path of the storm face as they deal with the recovery efforts of the storm, and we will do everything we can to assist in that effort. The storm moved onshore east of our Texas facilities and West of our Hammond, Louisiana operations. As a result, our assets were spared the brunt of the storm and all of our facilities are operating normally this morning. We will continue to monitor the track of the storm and adjust our operations as warranted.

We reported net income for our third fiscal quarter of $32.8 million or $1.48 per share. This compares to net income of $53.4 million or $2.41 per share during last year's third quarter. Net income during last year's third fiscal quarter reflected the accrual of probable liability for our contribution to our ESOP of $2.7 million before income tax or $0.10 per share net of income tax. There is no ESOP accrual in this quarter's results.

I will begin this morning's call with a few general comments, before turning the call over to Lampkin and Mike. Before making any further comments, I'll ask Mike to give the cautionary statement regarding forward-looking statements.

Executive
Mike Cockrell

Thank you, Joe, and good morning everyone.

This morning's call will contain forward-looking statements about the business, financial condition and prospects of the company. The actual performance of the company could differ materially from that indicated by the forward-looking statements, because of various risks and uncertainties. These risks and uncertainties are described in our most recent annual report on Form 10-K, our quarterly report on Form 10-Q filed this morning with the SEC and in our press release published this morning. These documents are available on our website at sandersonfarms.com. You should not place undue reliance on forward-looking statements we make this morning. Each such statements speaks only as of today and we might not update or revise our forward-looking statements. External factors affecting our business such as feed grain cost, market prices for poultry meat, the health of the economy, and of course the COVID-19 pandemic among others remain highly uncertain and volatile and our view today may be very different from our view a few days from now.

As stated in our 10-Q filed this morning, the risks and uncertainties for our business